Retiring in Texas: what you need to know
This article will take you through the main things you need to consider if you are retiring in Texas.
Summary
Roughly 14% of the population of Texas is over the age of 65.
Many retirees are drawn to Texas for the relatively low cost of living and warm weather.
Some top landing spots for retirees include Austin, San Antonio, and Corpus Christi.
A financial advisor can help you determine the best place to retire, given your specific situation.
Is Texas a good place to retire?
Texas, the Lone Star State, is an increasingly popular retirement destination for Americans seeking a warm climate, low cost of living, and a variety of outdoor activities.
With its beautiful coastline, diverse cities, and hospitable culture, Texas offers retirees a unique and affordable retirement experience.
According to 2024 data from the U.S. Census Bureau, Texas had a population of approximately 31.3 million people—a number that has grown by more than 7% since the pandemic. Nearly 14% of the overall population is over the age of 65, amounting to almost 4.4 million people of retirement age.
What age can you retire in Texas?
There’s no specific age at which you can, or need to retire in Texas. This means that individuals are free to retire whenever they choose, as long as they are able to financially support themselves. However, there are some age-related benefits and considerations for retirees in Texas:
Social Security benefits: The earliest age at which you can begin receiving Social Security benefits is 62, but if you delay taking benefits, your monthly payments will increase. Full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after FRA can result in even higher monthly payments.
State retirement programs: For state or public employees, there are some retirement programs that are worth investigating, such as the Texas County & District Retirement System.
Medicare eligibility: Medicare eligibility begins at age 65, regardless of retirement status. However, if you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare.
Age discrimination: It is illegal for employers to discriminate against employees or job applicants based on age.
Retirement savings: Regardless of retirement age, it is important for individuals to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement.
However, like any location, there are both pros and cons to retiring in the state.
Why do people retire to Texas?
There is a lot to like about Texas, particularly for those who are considering retiring there.
Warm climate: Texas has a warm climate, particularly in the southern and coastal areas, with mild winters and hot summers. This makes it an attractive destination for retirees who want to enjoy outdoor activities year-round, or the heat.
Low cost of living: Texas has a relatively low cost of living compared to many other states, with lower housing, healthcare, and grocery costs.
Outdoor activities: Texas is home to many state and national parks, forests, and beaches, providing retirees with ample opportunities for outdoor activities such as hiking, camping, fishing, and golfing.
Hospitable culture: Texas is known for its friendly and welcoming culture, with a strong emphasis on family and community. Retirees can enjoy living in a hospitable environment that offers plenty of opportunities to meet new people and make friends.
What puts people off retiring to Texas?
Some things may be off-putting for some retirees, however:
Natural disasters: Texas is prone to natural disasters such as hurricanes, flooding, and tornadoes, which could be a concern for retirees living in certain areas.
Healthcare quality: While Texas has a lower cost of healthcare, it may not have the same quality of care as other states.
Transportation: Texas is a large state with limited public transportation, making it more difficult for retirees who do not drive to get around, particularly in rural areas.
Best places to retire in Texas
If Texas is your chosen retirement state, here are some of the best places to retire in:
Austin: Known for its vibrant music scene, eclectic food options, and outdoor recreation opportunities, Austin is a great place for retirees who want to stay active and engaged.
San Antonio: Home to the famous River Walk and the Alamo, San Antonio is a popular tourist destination that also makes a great place to retire. The city is known for its rich history, cultural events, and mild winters.
Houston: The largest city in Texas (and fourth-largest in the US), Houston offers a diverse range of activities, from world-class museums and galleries to professional sports teams and outdoor parks. The city is also home to several top-rated hospitals, making it a good option for retirees who want access to quality healthcare.
Dallas-Fort Worth: The Dallas-Fort Worth metroplex is a thriving hub for business, entertainment, and culture. With plenty of shopping, dining, and entertainment options, it's a great place for retirees who want to stay busy and engaged.
Corpus Christi: Situated on the Gulf Coast, Corpus Christi is a popular destination for beach lovers and water sports enthusiasts. The city also has a vibrant downtown area with plenty of restaurants, shops, and cultural attractions.
Fredericksburg: Located in the Texas Hill Country, Fredericksburg is a charming small town with a rich German heritage. The town is known for its wineries, antique shops, and art galleries, and it offers plenty of opportunities for outdoor recreation, such as hiking, biking, and fishing.
South Padre Island: If you're looking for a laid-back retirement by the beach, South Padre Island might be just the place for you. The island is home to pristine beaches, warm Gulf waters, and a variety of outdoor activities, such as fishing, kayaking, and birdwatching.
Retire in Texas: Is it right for you?
Texas offers a range of urban and rural retirement options, a warm climate and a comparatively low cost of living, but potential retirees should also prepare for a lack of transport infrastructure and variable healthcare quality.
It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Texas, including property taxes, insurance, and living expenses, in order to make an informed decision about whether the state is the right choice for your retirement.
Find an independent advisor through Unbiased to help you work through your retirement planning today.
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Content Writer
Sam Becker is a freelance writer and journalist based near New York City. He is a native of the Pacific Northwest and a graduate of Washington State University. He has worked as a business and finance journalist and writer for more than a decade, working with media publications, brands, and experts in the field